Basically, internet retailers, such as Amazon faces intense competition while trying to gain the market share. This is due to low costs of switching, ease-of-entry, and an escalated competitors’ number. To that effect, Amazon strategy aims at understanding the competitive environment, so as to be capable of creating value for its shareholders and customers. This paper will examine Amazon from a strategic point of view. In doing so, it will look at the following: the factors that led Amazon to quickly capture the majority of Internet retail space; what was done by Amazon in capturing the worldwide market; why the year 2006 is of significance to Amazon; and the direct competitors of Amazon, whereby the paper will select one Amazon’s direct competitor and then compare its mission and vision statements to Amazon.
There factors that led Amazon to quickly capture the majority of Internet retail spaces include: offering lower prices to its customers on virtually any commodity; and providing a customer experience that is of quality. Nonetheless, in order for Amazon to capture the global market, it did the following: employed the keep-it-simple-stupid (KISS) principle while developing the site, which guaranteed the speed loading of Amazon’s web pages; permitting customers to post reviews of their own books online; expanding its line of products to encompass merchandise like, computers, DVDs, toys, and software; and handling transaction processes online, which permitted customers to purchase, or sell books via the net (Kotha, 1998).
The year 2006 is of great significance to Amazon.com. This is because a web service storage called Simple Storage Service (S3) was launched by Amazon web services. S3 was capable of offering a steadfast, low-latency, and a tremendously scalable infrastructure for storing data at lower costs (Arrington, 2006). Ideally, direct competitors of Amazon include: CISCO, HP, iPhone; IBM; and SYS-CON MEDIA. The mission statement of Amazon is to keep on offering services and commodities that are of quality, and by use of the best obtainable technique and at a cheaper cost (Kotha, 1998).
Similarly, its vision statement is to develop a place whereby individuals can get as well as find out what they want to purchase online. On the other hand, the mission statement of IBM is striving to be the best in manufacturing, innovation, and developing of information technologies that are advanced, such as micro-electronics, computers, etc. Outstandingly, its vision statement is translating these information technologies that are advanced into valuable tools for their customers by employing our proficient remedies, as well as consulting corporate globally.
In conclusion, if a competitive advantage has been created by a company, it is of necessity for the company to keep on improving that strategy. Typically, a competitive advantage is deemed to be an entity for breathing and living and thus, for it to be maintained it requires nurturing.